Why is the Beijing Consensus referred to as "neo-mercantilism"?

The Beijing Consensus is often referred to as "neo-mercantilism" primarily because of its emphasis on government control and the importance it places on national wealth. Neo-mercantilism emphasizes a state-driven approach to economic management, focusing on maximizing a nation’s wealth and power through interventionist policies. This model contrasts with classical liberal economic theories that advocate for minimal government intervention in the economy.

Under the Beijing Consensus, there is a clear focus on state-led development, where the government plays a crucial role in guiding investment, supporting key industries, and ensuring that economic growth aligns with national interests. This includes strategies that reinforce domestic industries and potentially limit foreign competition, which aligns closely with mercantilist principles that prioritize national economic strength and resilience over free market tenets.

The other choices present ideas that are more aligned with liberal economic theories, such as free trade and globalization without restrictions, which are not characteristics of the Beijing Consensus. This consensus promotes controlled growth and development strategies tailored to the Chinese context, emphasizing state involvement rather than open or unrestricted market policies.